US federal agents probe alleged fraud in Minnesota after years-long investigation

Federal Homeland Security officials carried out a fraud investigation in Minneapolis on Monday, according to Department of Homeland Security Secretary Kristi Noem, as scrutiny deepens over what prosecutors describe as widespread abuse of federally funded programmes in Minnesota.

The move follows years of investigations tied to the nonprofit Feeding Our Future, which prosecutors say was at the centre of the largest COVID-19-related fraud scheme in US history. In that case, 57 defendants in Minnesota have already been convicted over a $300m scam that exploited a state-run, federally funded programme meant to provide food for children.

Earlier this month, a federal prosecutor alleged that half or more of the roughly $18bn in federal funds supporting 14 programmes in Minnesota since 2018 may have been stolen. Prosecutors said most of the defendants in those cases are Somali Americans.

Minnesota Governor Tim Walz responded at the time by saying fraud would not be tolerated and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught”.

On Monday, Noem posted a video on X showing DHS officers entering an unidentified business and questioning a worker behind the counter. She said officers were “conducting a massive investigation on childcare and other rampant fraud”.

“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” US Immigration and Customs Enforcement said in a separate post.

The operation came a day after FBI Director Kash Patel said on X that the agency had “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs”. Patel added that earlier arrests were “just the tip of a very large iceberg”.

President Donald Trump has repeatedly criticised Walz’s administration over how the fraud cases were handled. Tensions have also risen between state and federal authorities as the Trump administration’s immigration crackdown has increasingly focused on the Somali community in the Minneapolis–St Paul area, the largest such community in the United States.

According to the US Attorney’s Office for Minnesota, 82 of the 92 defendants charged in cases involving child nutrition, housing services and autism programmes are Somali Americans.

Walz’s office pushed back against accusations of inaction. Spokesperson Claire Lancaster said the governor has worked for years to “crack down on fraud” and has sought expanded powers from the state legislature. She said Walz has backed criminal prosecutions and taken additional steps, including tighter oversight and hiring an external firm to audit payments to high-risk programmes.